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Is an excess Roth IRA contribution taxable when withdrawing it after the tax filing deadline with extension?

admin — Fri, 25 Feb 2011 22:26:35 +0000

Question by pkmoney555: Is an excess Roth IRA contribution taxable when withdrawing it after the tax filing deadline with extension?
I contributed $ 6000 to a Roth IRA in 2006, which caused an excess of $ 2000. It is now after the tax-filing deadline with extension. I know that there is a 6% excise tax penalty already. My question is: Are there any taxes if I withdraw the $ 2000? And would the early distribution penalty 10% apply since I am under 59 1/2?

Best answer:

Answer by MukatA
No you only pay 6% excise tax. No other penatly. Here if the information:

In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. The tax cannot be more than 6% of the value of your IRA as of the end of your tax year.

In general, you must include all distributions (withdrawals) from your traditional IRA in your gross income. However, if the following conditions are met, you can withdraw excess contributions from your IRA and not include the amount withdrawn in your gross income.

Total contributions (other than rollover contributions) for 2006 to your IRA were not more than $ 4,000 ($ 5,000 if you are 50 or older).
You did not take a deduction for the excess contribution being withdrawn.
The withdrawal can take place at any time, even after the due date, including extensions, for filing your tax return for the year.

What do you think? Answer below!

Is there a max amount you can contribute to 2 seperate 401k accounts if you are married filing joinly?

admin — Fri, 09 Jul 2010 00:10:52 +0000

My wife’s company just added a 401k and I am considering contributing to it but was wondering if there are limits to max 401k contributions if we file married/jointly? I currently max out my 401k account and I know with our combined income status IRA contributions are no longer tax deductible so I am worried adding to her 401k will bring the same limitation.

Is there any income limit for married couple filing joint so we can deduct a traditional IRA?

admin — Tue, 09 Mar 2010 17:51:09 +0000

IRA Deduction-how much if married filing jointly and we both have IRAs in our own name?

admin — Mon, 08 Feb 2010 17:55:30 +0000

Hello. The above says it all. My wife and I are both over 50, and we file married/filing jointly. If we both put $5000 in our IRAs, do we get a $10,000 deduction, or do we max out at $5000?

thanks a bunch…

RVS

Is an excess Roth IRA contribution taxable when withdrawing it after the tax filing deadline with extension?

admin — Tue, 01 Dec 2009 02:48:52 +0000

I contributed $6000 to a Roth IRA in 2006, which caused an excess of $2000. It is now after the tax-filing deadline with extension. I know that there is a 6% excise tax penalty already. My question is: Are there any taxes if I withdraw the $2000? And would the early distribution penalty 10% apply since I am under 59 1/2?